Accepting only part of a loan

Starting from your real costs

Begin with your school's bill for the term, which covers tuition, fees, and housing and meals if you live on campus. Subtract the grants and scholarships on your offer, then any savings or family help you can count on. What remains is the gap your loans would need to cover for the charges that come straight from the school.

Then look at indirect costs such as books, a bus pass and personal expenses. These belong in your cost of attendance, but you can often trim them, and a loan taken to cover them still has to be repaid. Borrow for the costs you expect, and leave the rest of the offered amount unaccepted.

Telling your school the amount

Most schools let you accept, reduce or decline each loan on the student portal where your aid offer appears. Some use a separate form instead. If you take a reduced amount, check that the new total shows on your account before the term starts.

Federal loans are usually split across the terms of the year, with part paid out each term. If you accept a smaller yearly total, ask how the school will divide it, so a small spring payment does not catch you off guard.

Changing your mind later

You can usually raise a reduced loan later in the same year, up to the amount first offered, by asking the aid office. Deadlines for these requests vary and often fall before the final term of the year ends, so ask early if your costs change.

You can also lower or cancel a loan after the money is paid out. Your school will tell you how long that window lasts, and returning the money within it removes the interest and fees on the amount you send back. After the window closes, you can still pay money back to your servicer as an early payment.

Taking less this year leaves more room under the lifetime limit for later years. Each year's loans are offered on their own, so your next aid offer starts fresh.